National Republican., 1887-05-14
Come to Terms.

The Richmond Wig of Thursday, under
the head of "The Debt Settlement from
Republican Standpoint" contains the fol-
lowing:
1t would not be correct, perhaps, to say that
the NATIONAL REPUBLICAN is the organ of the
Republican party in Virginia, and yet 1t is true
that when the Wing ceased to occupy that
position the REPUBLICAN, made special effort
to become the mouthpiece of the Virginia
Republicans and it has devoted much of its
attention to Virginia affairs, and we suppose it
has as large circulation and as much influence
in the state as any other Republican journal
Recently 1t has been discussing the
Virginia debt question as fully as any state
paper has done. and Its views have been quite
conservative. A few days ago 1t proposed Il
compromise on the basis of s25 900 600 of prin-
cipal with a graduated rate of interest begin
ming with l per cent, and opposed con-
tinuance of the coupon feature. Yesterday,
in commenting on the failure OF the debt COM
mission to come to terms, it adhered to the
basis of s25OOO,OOO as the principal, but modi-
fled It's suggestions in regard to interest.
Copying what the NATIONAL REPUBLICAN,
sad on Wednesday morning, and giving the
results shown by the tables used on that
day, proving that the debt could be paid in
less period than thirty years on the grad
uated interest plan, at 2, 3, and per cent,
the Wing says:
While 1t is true that 1t is much easier 10 make
figures than it is to carry their results into
practical execution, still we think the scheme
of the REPUBLICAN could be successfully
worked out If the b0ndhOlderS WOuld dccep!he
terms proposed. But they have positively refused
TO accept $4,000, 900 with uniform rate at per
cent. We are glad, however, to have the Re-
PUBLICAN on record as opposing larger prin-
Cipal than sl5 100000, a higher rate of interest
than an average of per cent, and the tax
receivable coupon feature. That certainly does
not hold out much hope to the bondholders of
making better terms with the Republicans than
they can with the Democrats.
The Wing fails to state one very impor.
tant feature in the plan proposed by the
NATIONAL REPUBLICAN, and that is the
Issuance Of a new bond which shall contain
a contract that $750,000 shall be set aside
each year from the public revenues of the
state for the payment OF the interest on
and the redemption of the principal OF the
debt, or the enactment of constitutional
amendment setting aside that sum for these
purposes.
1t is these alternative proposals which
make the NATIONAL REPUBLICANS plan
better for the creditors, as 1t certainly is
better for the state than the one proposed
by the legislative committee. 1t is true
that the agreement to pay interest on the
bond issued Is a contract, aud 1t is also true
that the state has not compiled with its
contract, because IL had not speci ifcdlly pro.
Vided and set aside sum out of lis revenues
to pdy The interest And that is the main
reason why the interest has not been duly
paid.
With the specific sum OF $3.50 900 set aside
In the contract or the constitution, no state
officer aud no succeeding legislature would
ever divert that money to any other
purpose. And with that assurance the
creditors would be satisfied, and, we believe,
would accept the principle involved In the
plan Of the NATIONAL REPUBLICAN,, though
they might possibly haggle for an increase
of the amount to be paid to $27 900, 900.
The main point with Virginia is to secure
an adjustment which the creditors will
accept, and on terms which the state can
meet without fail and without burdensome
taxation. A few hundred thousand dollars
is bagatelle in comparison with the i'm
mense benefits to be derived from adjust
ment-with the millions upon millions OF
dollars that would come into the state for
investment, and will not come while this
debt question is unsettled and the states
credit impaired.
Why should the state or the creditors In.
sist that Virginia now, poor, barely recover